Interim
Joint Committee on Transportation

Minutes
of the<MeetNo1>Second Meeting

of the 2007 Interim

<MeetMDY1>September 4, 2007

The<MeetNo2>second meeting of the Interim Joint
Committee on Transportation was held on<Day>Tuesday,<MeetMDY2>September 4, 2007,
at<MeetTime>2:00 PM, at Gateway Community College-Boone Campus in
Florence, Kentucky<Room>. Senator Brett Guthrie, Chair, called the
meeting to order, and the secretary called the roll.

Senator Roeding moved to approve the minutes for the
Committee's June 5, 2007 meeting, as submitted. Representative Henley seconded
the motion, which passed by voice vote.

Dr. Hughes welcomed the Committee to Gateway Community
College and gave a brief overview of the facility. After his presentation he
introduced Mr. Doug Chambers, CEO for St. Elizabeth Medical Center, who
explained how the medical center's future expansion project would fit into the
community and the training opportunities offered by Gateway. Mr. Chambers said
that the project would begin in the fall 2007 and should be completed by the
end of 2009.

Mr. Steve Stevens, President, Northern Kentucky Chamber of
Commerce, welcomed the Committee and thanked them, and the General Assembly, for
their past and continued support for the Northern Kentucky area.

Next to speak was Mr. Bill Bulter, President/CEO, Corporex
Companies, LLC, who discussed the future plans for a project known as the
Oviation Complex. This residential and commercial development, as presently
designed, is contingent upon the construction of an east-west connector between
I-471 and I-75. Mr. Butler said that without the construction of this
east-west connector the Oviation Complex would not be feasible at its current
design. He asked the Committee to consider funding such a connector.

At this time Senator Williams addressed the committee
regarding his 2008 legislation, BR 244 - Public Infrastructure Authorities.
Senator Williams said that Kentucky's infrastructure needs to be examined. He
said inflation, aging infrastructure, increasing numbers of projects, and lack
of a viable federal funding mechanism is causing a funding crisis in this
state. Nationally, the statistics show that in U.S. over the last 50 years the
population has grown by 77%, the number of vehicles has increased by 271%, and the
total miles driven has skyrocketed by 471%, to almost three trillion miles
annually. Senator Williams noted that in his opinion, it was time for the
General Assembly to explore alternative financing methods to construct and
maintain highways.

Senator Williams said that BR 244 is the first attempt at
finding ways to address Kentucky's infrastructure needs while assuring that
Kentucky's taxpayers do not pay a disproportionate share of costs on projects
of regional and national importance. He said that BR 244 allows local
governments to address large public infrastructure needs by asking the Governor
to create local public infrastructure authorities. The Governor would then
create authorities by Executive Order, which would require General Assembly's
approval. The Authorities would be empowered to undertake and operate large
public infrastructure projects, as allowed by their charter. Senator Williams
said that BR 244 calls for 7 member authorities (3 members appointed by the
chief executive of the local government, subject to confirmation by local
legislative bodies, and 4 members appointed by the Governor, subject to
confirmation by the state Senate). The authorities would have the ability to
issue revenue bonds to cover project costs; contract with public or private
entities within or without Kentucky for design, construction, maintenance, and
operation of their project; accept federal, state, or local grants or appropriations,
and fix and periodically revise tolls. He said that this legislation creates
alternative avenues of financing and does not preclude the state from
undertaking the projects in a traditional manner.

In closing Senator Williams said that the state's
transportation needs are significant and growing faster than traditional
revenue streams and that congestion is costing the American public billion of
dollars every year and literally choking the metropolitan centers. He said
public-private partnerships offer tools state and local governments should
explore to begin addressing the state's needs.

Discussing local Northern Kentucky road needs were Gary
Moore, Judge Executive, Boone County and Darrell L. Link, Judge Executive,
Grant County. Judge Moore, representing Boone, Kenton, and Campbell Counties,
said that Northern Kentucky is growing by staggering numbers, and had a net
gain of nearly 24,000 new jobs over the last ten years. Which, he said, is
more than Jefferson and Fayette Counties combined.

Judge Moore said that in Boone County major projects have
had to be denied due to the infrastructure - a Richwood Road industrial park
project which would have offered two thousand additional jobs in the area had
to be denied, as well as a subdivision project designed to house twelve over hundred
homes. Other areas he mentioned that needed funding was an upgrade to the
Richwood-Mt. Zion exit; the Mall Road/Florence City Center revitalization
project; I-471-route 8 interstate interchange; Rt 9 extension from I-275 into
Newport; Connector Road at Northern Kentucky University; Phase II of the
Industrial Road (KY 1829) in Kenton County; 4th street bridge connection
between Covington & Newport; and connector road from KY 17 to Mary Grubbs
Highway; completion of Turkeyfoot Road (KY 1303); and the continued progress of
KY 536 (east-west connector across all three counties).

Judge Link, representing Carroll, Gallatin, Grant,
Pendleton, and Owen Counties said that one of the most important projects is
the $1,500,000 project for the Design Phase for reconstruction of Highway 22 in
Owen County. He said that this project, which is in the Six-Year Highway Plan,
begins at KY 227 and ends at KY 845, is important for the safety of the
citizens who travel this road as well as for the economic development in Owen
and Pendleton Counties. Judge Link said that Owen is the only county in
Kentucky which does not have an interstate or railroad within its bounders, making
it almost impossible for that county to compete for jobs and industry. He noted
that 62% of Owen County's workforce travels out of the county to work.

Judge Link stated that other major highway concerns are the
widening of US 27 to Falmouth; and US 42 in Carroll County, which has more
industrial jobs per capita than any other county in the state. He said that
the North American Steel Plant alone has more than 1800 trucks per week
traveling over insufficient and unsafe infrastructure.

Cindy Minter and Mark Rogge, Co-chairs of the Transportation
Committee, Northern Kentucky Chamber of Commerce, discussed infrastructure
concerns on the Brent Spence Bridge. Ms. Minter said that Boone County was
named as one of the top 20 growth counties in the nation with the rest of
Northern Kentucky counties not far behind in growth. She said that truck
travel on I-75, according to the FHWA, is about double the average of other
freeways in the U.S. and in Ohio alone exceeds 5.6 billion vehicle miles
annually.

Ms. Minter said that the Brent Spence bridge was built in
1962, costing $10 million, and estimated to accommodate 80,000 vehicles daily.
Structural improvements on the bridge was done in 1985 and 1998, with a combine
cost of $20.2 million, and increased the vehicle capacity to 135,000 daily.
The bridge currently handles over 170,000 vehicles daily and has become both
obsolete and dangerous to travel upon. The annual crash rate on the Brent
Spence Bridge is 750 percent higher than the annual crash rate on Kentucky's
interstates.

Mr. Rogge stated that in 2003 it was estimated that the cost
of either improving or replacing the bridge was around $750 million, if
construction began by 2010. That figure was re-evaluated in 2006 and the cost
more than tripled the earlier estimate to approximately $2.5 million if the
construction begins by 2015. He said that the Northern Kentucky Chamber of
Commerce urges the Transportation Committee and the Kentucky General Assembly
to find a way to improve or replace the Brent Spence Bridge, either by normal
channels or by bold and innovative means. Mr. Rogge said that the
Commonwealth's public health and future depends upon its action and modernizing
policies will allow Kentuckians to sustain and advance one of its most critical
assets.

Marc Williams, Commissioner of Highways, Ketnucky Transportation
Cabinet (KYTC), presented an overview of Northern Kentucky projects, 2007
highway program, and bridge inspection and maintenance program. Commissioner
Williams said that 2006 represented a record KYTC construction year with $1.06
billion in new construction contracts. And for year-to-date in 2007 KYTC has
equaled the 2006 record. The Northern Kentucky Six-Year Plan project
authorizations have increased from $350 million in 2000 to $480 million in 2006,
and the letting awards for District Six have also increased from $280 in years
2000-2003 to $478 in years 2004-todate.

Commissioner Williams said that major projects that were started
and completed since 2004 in the four counties are: Bracken County-KY 19;
Gallatin County-I-71/US 42; Owen County-KY 22; and Pendleton County the
Brown-McKinneysburg Road. He said that Boone County has four separate major
projects currently under Phase I Construction; Campbell County has two major
projects; and Kenton County has three. Counties under Phase II Construction
are Bracken County, Carroll County, Gallatin County Harrison County, and
Robertson County all having one major project; and Grant County having two
major projects under construction. And, Commissioner Williams said that there
are nine major projects scheduled for 2007 lettings for Northern Kentucky.

Regarding the Brent Spence Bridge, Commissioner Williams
said that the Planning Study Document Reviewed and accepted by Federal
participating agencies occurred in January 2007 and that currently the state
was performing Operational Analysis of Alternatives, as required by Federal
Government, should be finalized by November 2007. He said that an updated
costs analysis showed construction costs range between $2.09 billion and $3.03
billion - Kentucky's share would be $1.14 to $1.65 billion and Ohio's share
would be $950 million to $1.38 billion since Kentucky's boundary encompasses
most of the Ohio River.

Commissioner Williams said that under Governor Fletcher's
direction KYTC conducted new field inspections of structurally deficient steel
truss bridges to insure their safety. He said that KYTC is continuing to
coordinate with FHWA on further areas of focus based upon the on-going
investigation in Minneapolis due to one of its bridges collapsing. Commissioner
Williams noted that Kentucky has 14,067 bridges of which 8,998 are owned by the
state. The number of structurally deficient bridges is 1,356 (644 owned by the
state), and the number of functionally obsolete bridges in Kentucky is 2,928
(of which the state owns 1,955).

In closing Commissioner Williams noted that the Federal
Bridge Program allows for the replacement of approximately 30 bridges per year
and the KYTC Bridge Maintenance Budget contains $20 million annually for
inspections and routine bridge maintenance. He said that the Federal Program
and KYTC's Bridge Maintenance Budget together does not adequately address the
state's concern of deficient and obsolete bridges.

Prior to adjourning the meeting Senator Stine thanked the
Committee for its interest in Northern Kentucky's infrastructure concerns. She
stated that Northern Kentucky is not unique in its infrastructure problems, and
that she knew that most of Kentucky's counties were experiencing the same type delimenias.
Nonetheless, she said that she wanted to thank the Committee for taking the
time to listen to this areas' major infrastructure concerns.

With no further business before the Committee the meeting
adjourned at 4;10 p.m.